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Question: A drug manufacturer believes there is a 0.95 chance that the Food and Drug Administration (FDA) will approve a new drug the company plans to distribute if the results of current testing show that the drug causes no side effects. The manufacturer further believes there is a 0.50 probability that the FDA will approve the drug if the test shows that the drug does cause side effects. A physician working for the drug manufacturer believes there is a 0.20 probability that tests will show that the drug causes side effects. What is the probability that the drug will be approved by the FDA?

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